Using Social Network Analysis to Identify Innovation Inhibitors - Masterfoods USA

We've talked previously about the value of stronger employee social networks. A great study by researchers at NYU, MIT and BU described the benefits of stronger and more diverse employee networks for information seeking. And the ways to improve their measures.

But here's something that should be considered...if you map out these employee connections, what are you looking for, and what actions would you take to improve the health of the enterprise social network?

Turns out there is a good body of research around this. We came across the work of Professor Rob Cross of the University of Virginia. Here is Professor Cross's background:

For over a decade, my research, teaching and consulting has focused on applying social network analysis ideas to critical business issues for actionable insights and bottom-line results. I have worked with over 200 leading organizations (companies, government agencies, and non-profit organizations) on a variety of solutions including innovation, revenue growth, cost containment and talent management.

He has published research papers and case studies. Today, we want to focus on the published case study for Masterfoods USA, a division of Mars, Inc. Masterfoods operates three core business: confectionery/snack food, pet care and main meal food.

Note: Neither Mars nor Masterfood are Connectbeam customers.

Masterfoods' Growth Hinges on R&D

Masterfoods had successfully grown through expansion into new markets. That growth strategy was slowing, so the company wanted to increase its share of existing markets. Key to that was a healthy R&D pipeline.

Masterfoods management was not worried about having talented people. Rather, it felt like the internal networks needed help to better connect people with ideas, knowledge and political capital. Management wanted to "encourage employees to leverage the right expertise across the extended network (inside and outside the organization) to bridge otherwise disconnected worlds."

A critical issue was that the R&D group, after operating as a centralized group for several years, was being assigned to separate business units. Understanding existing relationships was an important step in managing this process.

Here is how Professor Cross describes the "why" behind the network analysis for Masterfoods USA:

• To identify the R&D network, and develop a plan for maintaining and building relationships necessary for ongoing innovation
• To pinpoint where connectivity needed to be improved so interventions would be accurate and successful
• To take advantage of the diversity of the three core businesses and the best practices among them, particularly related to innovation flow

So the company worked with Professor Cross to map out the internal social networks of employees. This was done in a decidedly low-tech way, via surveys. But the data was valuable, and compelling.

The Analytical Work

The survey was a relatively simple activity. Respondents were asked: "Please indicate the extent to which the people listed below provide you with information that helps you to accomplish your work." From these answers, combined with other data, several interesting results emerged.

Key findings:

1. Network Connectivity: The overall network is well connected for information sharing and decision making, but there is a very high reliance on a few people, particularly leaders.
2. Cross-Boundary Collaboration: There are comparatively low levels of connectivity across segments and several disconnects across sites.
3. Distribution of Expertise: Several gaps exist between skills that people have and those people indicate they need. In some cases, connections were not made between expertise areas that should have been connected.
4. Innovation and Learning: There is potential insularity within the network. However, more connected people reach out externally more often than those less central.

Surprise: After seeing the survey results, Masterfoods management was surprised by the people identified as most central in the network.

Pareto Principle: The number of relationships in the network would fall by 18% if the 12 most central people were removed.

Business Unit Silos: Information sharing outside business units was generally minuscule. Even for natural overlap, such as confectionery/snack food and main meal food.

Internal A-Listers' Smothering Effect: The Masterfoods USA network suffered from domination, where the voices of a few central network members were drowning out novel ideas. Senior management felt that new product opportunities were being missed because new and potentially disruptive ideas from less influential scientists in other competency areas were not being heard.

Leave the Echo Chamber: The 12 most central people in the R&D network seek information outside the R&D group significantly more than everyone else.

Follow-Up

From these results, Masterfoods was able to understand the dynamics of the R&D network, including what made people successful and what was inhibiting innovation. Executives put into place individual and community-wide action plans to address these findings.

The challenge, of course, is to monitor and improve these connections over time, and to measure them on an ongoing basis. There is a role here for enterprise social software to be a tool for improving internal social networks.

And if this sort of work is of interest, we encourage you to check out Professor Cross's other case studies.

Comments

[Dennis D. McDonald, Ph.D.]

Another important question is, why is there so little cross-boundary networking? Even if systems were provided to facilitate that, would there still be actual or perceived restrictions?

Dennis McDonald
Alexandria, Virginia USA
http://www.ddmcd.com

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